Related to the Economics in Practice on Page 281: the Foreign

question 131

Multiple Choice

Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. Based on the difference in demand elasticity of foreign visitors and local visitors, the optimal strategy for the temples to maximize revenue is to

• A) charge a higher price to foreign visitors than to local residents.
• B) charge a lower price to foreign visitors than to local residents.
• C) charge the same price to foreign visitors and to local residents.
• D) not charge for admission and rely instead on donations from both local residents and foreign visitors.

---

Definitions:

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focusing on better wages, hours, and working conditions.

War Effort

The collective actions and resources of a nation or group of nations mobilized to support military operations during a time of war.

War Industries Board

An agency of the U.S. government created in World War I to manage the creation of materials for the war and distribute industrial goods.

Red Scare

A period of intense fear of communism and radical political ideologies in the United States, especially prominent after World War I and during the Cold War.